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  • Torchlight Energy - A NewCo Turnaround Story That's Been Derisked  [View article]
    I would never short this stock, but with that being said, it reeks of fraud and seems to be run by a penny pumper/reverse merger type crowd (If I remember correctly, the shell co that eventually became torchlight was like a women's yoga fitness company or something along those lines, before that). I wouldn't touch it
    Jul 22, 2015. 06:44 PM | 1 Like Like |Link to Comment
  • Erin Energy: Questionable Characters At A Stratospheric Valuation  [View article]
    I agree, if Camac hasn't committed outright fraud, Lawal has a long history of being a self dealer and a promoter, using Camac as his piggy bank.
    Jun 17, 2015. 10:31 AM | Likes Like |Link to Comment
  • Low-rate "torture" for the regional lenders  [View news story]
    Another populist idiot
    Apr 22, 2015. 01:54 AM | 6 Likes Like |Link to Comment
  • Talisman Energy Deal Not Productive For Shareholders  [View article]
    A lot of Talisman's assets are gas-weighted versus 95%+ Crude in the Bakken for the Kodiak deal. Also, market conditions have really, really deteriorated. With that in mind, I think it was a good call for Talisman to sell at a pretty large premium and allow shareholders to take the cash and reinvest in this depressed E&P market
    Dec 17, 2014. 11:06 AM | Likes Like |Link to Comment
  • Deep Value And Event-Driven Investment Idea: Interoil Exploration And Production  [View article]
    Great article of a company I have never heard of.

    Looks like the company is undervalued even accounting only for the Colombia assets (5MMBoe 2P reserves at ~25$/Barrel=125MM$+ Upside) though I guess a bit of debt there too
    Mar 8, 2014. 10:20 PM | 1 Like Like |Link to Comment
  • Tuscany International Drilling: Is Something Rotten? (Part 2)  [View article]
    I see where you are going, I think the ultimate evidence against the company would be if they sold their assets to M&P for some assumption of debt and 109MM SHARES in their own company when they knew full well that they were about to file for bankruptcy and make those shares worthless by entering into bankruptcy and letting CS buy the assets in a credit bid that failed to take into account shareholders.
    Feb 17, 2014. 06:17 PM | 2 Likes Like |Link to Comment
  • Tuscany International Drilling: Is Something Rotten? (Part 2)  [View article]
    I think the real problem is the trend of fraudulent TSX traded companies and the failure of the Canadian Regulatory Agencies to go after criminal management teams.

    Santa Maria Petroleum/Quetzal Energy comes to mind as one of the biggest scams of the century (sold ~20MM$ in assets to a former director for 1.5MM, sold an interest in an asset set to produce 100 BBL/D for 50k).

    as do another 50 or so other companies where non-arms length transactions are commonplace and managers act as directors of each others fraudulent publicly traded shells
    Feb 16, 2014. 11:18 PM | 3 Likes Like |Link to Comment
  • Tuscany International Drilling: Is Something Rotten? (Part 2)  [View article]
    This article helps to demonstrate the high likelihood that shareholders can prevail in the end if we can get enough money to pay our lawyer's retention fee, we are almost at 10K already, needing only another 6K to reach our target. If you are a shareholder who has been faulted, it should be your obligation to contribute to the lawyer retention fund and if you are just someone sympathetic to our cause, perhaps as someone who has been deceived by corporate mis-management (especially in Canadian stocks) in the past, donations would greatly assist the cause. Link Below:

    http://bit.ly/1caCp6L
    Feb 16, 2014. 06:15 PM | 2 Likes Like |Link to Comment
  • Tuscany International Drilling: Is Something Rotten? (Part 1)  [View article]
    Here is a link to the lawyer retention fund, 9,000$ raised already, any other shareholders willing to step in should do so soon:

    http://bit.ly/1caCp6L
    Feb 15, 2014. 05:34 PM | 2 Likes Like |Link to Comment
  • Tuscany International Drilling: Is Something Rotten? (Part 1)  [View article]
    I think there is a decent likelihood that shareholders get something
    Feb 14, 2014. 07:40 PM | 1 Like Like |Link to Comment
  • Tuscany International Drilling: The Most Undervalued Company In The Oil Services Sector?  [View article]
    Also, this company isn't an ATP Oil and Gas (those creditors got hosed, even DIP loan was trading at a discount). I saw where Calmena (Tuscany's Chapter 11 buddy) shipped one of its rigs to Texas for a couple million dollars to get better contracts. I figure Tuscany could do the same with all its rigs and sell them at auction in the US and recover a decent portion of its Asset Value. Brazil and Mexico are weak markets right now, but let's say TID goes into CH.11 Protection and a quarter from now the market firms up and they are able to get good rates and get higher rig utilization---most certainly then the company would be worth more and the shareholders would be compensated. Oil prices are pretty high and I look at TID shares as a South America call option.
    Jan 30, 2014. 04:13 PM | Likes Like |Link to Comment
  • Tuscany International Drilling: The Most Undervalued Company In The Oil Services Sector?  [View article]
    It is a Tuscany Subsidiary (treasury stock) but it seems to be essentially in escrow. And I do agree, the shareholders would be looking at litigation if those repurchased shares are worthless, but if there is a buyer for the company as a going concern and those shares are retired, it would definitely make things better for existing shareholders
    Jan 30, 2014. 09:01 AM | 2 Likes Like |Link to Comment
  • Tuscany International Drilling: The Most Undervalued Company In The Oil Services Sector?  [View article]
    They "Cleaned up their balance sheet" in the last quarter
    You have to allot some value to the M&P equity~10-20MM dollars at the time of the deal, the "real" write down shrinks, you have to further look at the fact that the company has an allowance for doubtful accounts now of ~20M$, M&P also assumed some debt. The African Assets were older and located in a less ideal part of the world, requiring higher maintenance costs (associated with the age of the rigs) and higher G&A costs, getting rid of them made simple operational sense. I don't know what management's playbook is, but G&A still eats up a sizable portion of gross margins such that it might make sense for the company to look for a bigger acquirer (to obtain some benefits of scale).
    Empirically equity holders tend to do better in chapter 11 when management's interests are aligned with shareholders, Dawson and Wright own what, 20 Million shares? and they legally can't sell those shares. The price action in the company...small uninformed shareholders.
    Jan 29, 2014. 09:02 PM | 2 Likes Like |Link to Comment
  • Tuscany International Drilling: The Most Undervalued Company In The Oil Services Sector?  [View article]
    Also on the bright side, in their forbearance news release they said they would potentially file in a US bankruptcy court, good news for equity holders (equity committee)
    Jan 28, 2014. 03:54 PM | Likes Like |Link to Comment
  • Tuscany International Drilling: The Most Undervalued Company In The Oil Services Sector?  [View article]
    If there is forced debt repayment, and the covenants of the debt state that all receivables and proceeds go to paying down debt, if the company takes in 33MM in HRT receivables, 13 from CYA, and 20 from the sale of their asset sale, net of interest and special creditor charges you are still looking at around 50MM, subtract that from the Secured debt and the leverage improves quite a bit to about 150M debt and 330 In PPE (company has positive working capital position ie. receivables greater than payables) and if the company is earning anything above their rate of interest, that would further better position shareholders to receive something in the end.

    The oil services sector is much different from the E&P space and I think the risk to reward here is pretty good. Given that TID has 150M dollar in net debt after factoring out positive working capital, in a chapter 7 (if Ch.11 turns into liquidation) scenario the company would need to write down the value of its by ~180 Million dollars to leave the shareholders with nothing (that's ~60% write down trading in assets that are already written down significantly, not taking into account transaction costs, etc, which could run a few percent). I don't see that happening and I think CS can negotiate a better deal.

    Why would the CEO of the company, knowing that there was an imminent liquidity crisis sell its africa assets for any consideration in shares if it knew that those shares would be worthless? I think again, the company will exit bankruptcy as a going concern, equity holders will own at least a portion of the company. It's also possible those shares will be used by management to incentivize its syndicated lenders to play ball, give them debt in the new company and ~1/3 of the shares, seems like a pretty good deal to me.

    If you are looking for a company that would do well in a liquidation scenario, look at Calmena, they are also in forebearance and they actually have lower leverage (~27 in net working capital and 62 in debt=35 in net debt and ~130 in assets)
    Jan 28, 2014. 02:09 PM | 1 Like Like |Link to Comment
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